Business & Investment

BlackBerry (TSX: BB) soars above $ 30: Need to buy now?

What an amazing pop for BlackBerry (TSX: BB)(NYSE: BB) stock. Stocks soared beyond the price targets of all sell-side analysts on the street. Earlier, after selling out in late December, BB shares said they were ripe for picking, but after a recent run, stakes have definitely been raised.

Reddit Wall Street Bets oppressive shorts

Now, I don’t know how much BlackBerry inventory needs to be increased, how painful the reversal will be, or when such a reversal will occur. All I know is that underestimating the firepower behind the Reddit channel “Wall Street Bets” is a big mistake.

Considering that the shorts are squeezed from the following names GameStopBetting on stocks that the WallStreetBets crowd has crossed, especially short-term, high-interest names, has become a dangerous suggestion.Heck, given the 300% daily surge AMC Entertainment It can be argued that the art of stocks, short cells is dead.

At the same time, euphoric investors trying to put fresh money into names like BlackBerry after nearly 300% of a few weeks of pop should be aware of the potential downsides. I still see BlackBerry stock as relatively cheap with less than 15x sales, but I’m not sure if this parabolic run is a big upturn revaluation that many value investors have been waiting for. .. It can turn around without notice, or it can continue to gain momentum as snowballs roll down a hill that has just shattered.

Should You Buy BlackBerry Stock For $ 30 Or More?

Personally, I think there are better risk / reward opportunities TSX index today. However, as the desire for quick profits grows, I’m surprised that if BlackBerry’s share price continues to soar, it will continue to be hit by previously hit high bets and rotation to significantly shortened names. I count that there is no.

I’m no longer the same raging bull on BlackBerry as I was a few weeks ago, but I’m not ready to call for an inventory reversal, and I’m not thinking about price targets.

Wild swing first!

In many of our previous articles, we have referred to BlackBerry stock as a highly misunderstood company that is difficult to value. Keep in mind that acquisitions and other moving parts have made it much more difficult for the valuation process to determine the exact range of intrinsic value. The recent actions of the name only make things difficult for high-value hunters. Is the stock price reasonable after the pop?

Perhaps if you compare the BlackBerry, which is turning the ship around, to something like GameStop.

Fool contributor Chris MacDonald says BlackBerry is certainly Must buy A bargain for your TFSA. He believes stock prices are much higher, even after Big Pop. BB stocks are currently in the media attention, so don’t be surprised if BB stocks continue to rise. That said, it is advisable to hide such heated stocks in the TFSA only if you are willing to accumulate more stocks in the event of a significant loss of cards in the short term.

BlackBerry inventory: It’s pretty dangerous to get long.Lack is more than reckless

If you are keen on entering the BlackBerry and have a strong stomach, consider starting a partial position with the intention of expanding to a full position over time. If the name is already large, it’s a good idea to consider removing the principal from the table to do the rest. And if you’re thinking of betting on a BlackBerry after an unprecedented pop, don’t do that!

Betting on such a name is far more dangerous than buying stock at these heights. The risk of being pushed out of your position is high, and you don’t know the amount of loss you can incur by stepping in front of a freight train that is in stock on BlackBerry.

Speaking of great value opportunities, check out these stupid top picks!

Just released! 5 shares under $ 49 (free report)

Motley Fool CanadaThe team that is sweeping the market has released a new free report revealing five “dirt cheap” shares that can be purchased today for less than $ 49 per share.
Our team considers these five stocks to be very undervalued, but more importantly, Canadian investors can quickly make big bucks.
Do not miss it! Just click the link below to get a free copy and find all 5 stocks right now.

Request a free 5 share report now!


Stupid contributor Joey Frenet There are no positions in any of the listed stocks. The Motley Fool recommends BlackBerry and BlackBerry.

BlackBerry (TSX: BB) soars above $ 30: Need to buy now?

https://www.fool.ca/2021/01/28/blackberry-tsxbb-soars-past-30-should-you-buy-right-now/ BlackBerry (TSX: BB) soars above $ 30: Need to buy now?

Back to top button